...[pic] SOUND FINANCIAL REPORTING IS A GOOD THING FOR BRINGING CONFIDENCE BACK TO THE CORPORATE WORLD Submitted By: Ahmed Shafiul Huq 801414063 Principle of Accounting (EIB505) Section: B Executive Master of Business Administration Submitted To: Mr. Mohammad Rakib Uddin Bhuiyan Assistant Professor Department of International Business Faculty of Business Studies EXECUTIVE SUMMARY A company’s financial reporting amalgamates important documents to create an effective spreadsheet to simplify the financial data of an organization. It captures much of the information that organizations prepare, publish, and use. Financial reporting plays an integral role in the capital markets and economic stability and growth, and efforts to enhance its quality are vital. A Sound Financial Reporting provides us relevant, meaningful, reliable, accurate and comprehensive reporting of management stewardship whether in the form of numbers or other operating data. It is increasingly important for businesses to be financially transparent and for governments to establish a sound regulatory environment for corporate financial reporting. Sound financial reporting can benefit business by some ways just like valuing business, easy to identify...
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...FEATURES INCLUDE Issue 52 Banking & Finance Risk & Compliance International Financial Reporting Standards Global outlook Banking & Finance Feature Is corporate governance a modern fantasy? Andrew Higson discusses the reality of financial reporting and asks if corporate governance still has a role to play in the modern business world. W hat is the difference between the collapse of Enron and the recent collapse of the banking sector? Well, the obvious answer is that Enron’s demise was not as significant. Yet, in the wake of Enron’s collapse, the Sarbanes-Oxley Act was rushed into law in the USA in order to cure the perceived corporate ills of, and give back credibility to, corporate America. Organisations around the world have since spent thousands of hours becoming Sarbanes-Oxley compliant in order to be able to continue trading with companies in the USA. At the centre of Sarbanes-Oxley was its focus on strengthening corporate governance procedures to prevent fraud and mismanagement – but the chaos in the banking sector must raise a question over the success of Sarbanes-Oxley and, more significantly, over the whole idea of corporate governance. way in which an organisation is run and the way in which its results are presented to the outside world. So where does this leave the non-executive directors? One of the main elements in the recent development of corporate governance has been the growth in the use of non-executive directors. One of their roles is...
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...1 Issues in Financial Reporting The path to knowledge cannot be found without visions and an overall picture. ± R. Mattessich oday's dynamic business environment is heralding a revolution in the need for, and the way in which, accounting data is utilized. This has resulted in talk of `an accounting revolution' (Beaver, 1998) and the possible `rede®nition of accountancy' (Elliott, 1998: 7). However, it is all too easy to become caught up in this stampede for change, but how far can accounting change and for it still to be called accounting? This chapter seeks to explore the major issues facing contemporary ®nancial reporting ± this will include its interrelationship with external auditing and the provision of assurance to those outside the reporting entity. After all, `[e]ffective reporting and accounting, and external scrutiny from auditors, are essential for effective corporate governance' (Company Law Review Steering Committee, 2001: para. 8.1). To understand the ®nancial statements, one needs to appreciate the auditors' work and opinion, and, conversely, to understand the auditors' work and opinion, it is necessary to appreciate the scope and limitations of the ®nancial statements. All too often, ®nancial reporting and external auditing are treated and discussed in isolation despite being inextricably linked. However, the ®nal ®gures in the ®nancial statements may come about as a result of negotiations between management and their auditors ± with the auditors examining...
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...Accounting, Auditing & Accountability Journal Emerald Article: Sustainability accounting and reporting: fad or trend? Roger L. Burritt, Stefan Schaltegger Article information: To cite this document: Roger L. Burritt, Stefan Schaltegger, (2010),"Sustainability accounting and reporting: fad or trend?", Accounting, Auditing & Accountability Journal, Vol. 23 Iss: 7 pp. 829 - 846 Permanent link to this document: http://dx.doi.org/10.1108/09513571011080144 Downloaded on: 04-11-2012 References: This document contains references to 57 other documents Citations: This document has been cited by 12 other documents To copy this document: permissions@emeraldinsight.com This document has been downloaded 5947 times since 2010. * Access to this document was granted through an Emerald subscription provided by UNIVERSITI MALAYSIA TERENGGANU For Authors: If you would like to write for this, or any other Emerald publication, then please use our Emerald for Authors service. Information about how to choose which publication to write for and submission guidelines are available for all. Please visit www.emeraldinsight.com/authors for more information. About Emerald www.emeraldinsight.com With over forty years' experience, Emerald Group Publishing is a leading independent publisher of global research with impact in business, society, public policy and education. In total, Emerald publishes over 275 journals and more than 130 book series, as well as an extensive range of online products and services...
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...research relies on historical data, such as the Enron scandal, and the recent decision by the United States Supreme Court decision that deems SOX as constitutional, to support that legislation is a necessary requirement in today’s global corporate environment, in which some of the largest corporations have proven that, left to their own devices, they will gravitate toward corporate malfeasance. The Sarbanes-Oxley Act of 2002: WorldCom. Enron. Adelphia. Global Crossing. What do all these companies have in common? They will always be synonymous with the following: financial fraud, corporate malfeasance, internal corruption, and the reason behind the passage of the Sarbanes-Oxley Act of 2002 (SOX). Not since the Crash of 1929 and the subsequent passage of the Securities Act of 1933 and the Securities Exchange Act of 1934 (Bumgardner, 2003, para. 2), had the country seen such a push for financial reform. Triggered by investigations into corporate fraud by some of the largest and most successful corporations in the world, SOX would be marketed as the antidote to the epidemic of corporate corruption; that is until the financial crisis of 2007-2010. The purpose of SOX was to prevent and detect fraud in financial statement reporting, increase corporate transparency and accountability, as well as restoring the public’s confidence in the stock market. Has SOX had an impact on ethical financial...
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...15 ECTS Spring 2014 The evolution of CSR Reporting in the Banking Sector of Greece An analysis of specific characteristics of CSR Reporting Author Papakostopoulos, Georgios Supervisors Jonnergård, Karin Loft, Anne 2014-10-20 1 2 Abstract Title The evolution of CSR Reporting in the Banking Sector of Greece An analysis of specific characteristics of CSR Reporting. Seminar Date 2014-06-02 Course BUSN69, Degree Project – Accounting and Auditing Author Georgios Papakostopoulos Supervisors Karin Jonnergård and Anne Loft Keywords Banks, CSR, Development, Reporting, Standardisation Purpose This thesis aims to examine the development of CSR reporting in the banking sector. The emphasis is set on a number of characteristics. Trends for standardization will be also examined Methodology The methodology undertaken is generally based on a qualitative research approach through a combination of content analysis with interviews. The research has a partly longitudinal, inductive and comparative character. Theoretical Perspectives The theoretical aspects that were used in the analysis were a combination of the theoretical framework of the Legitimacy, Stakeholder and Institutional theory with the reporting requirements from a number of standards, guidelines, initiatives and indices. Empirical Foundation The empirical material consists from Corporate Social Responsibilities reports that...
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...Financial Statement Insurance This is a proposal to increase the effectiveness of corporate governance in the post-Enron era through the implementation of financial statement insurance. This paper gives a brief history of the purpose of financial statements as well as the importance of external auditing of financial statements. It gives examples of the corporate governance failures of companies like Enron and WorldCom. It covers how and why these failures happened and reviews the grave consequences of the failures. It also takes a brief look at the laws that have been passed to prevent future failures, such as the Sarbanes-Oxley act of 2002. It shows how the new laws have been helpful but have not solved the problem. Finally, it shows how the implementation of financial statement insurance will greatly improve the accuracy of external auditing of a company’s financial statements. Purpose of financial statements The purpose of financial statements is to give an overall picture of the health and profitability of the business. This overall picture of the business provides information on a company’s financial position and performance. Financial statements are also necessary to show changes in a company’s financial position. Financial statements are used internally by managers, shareholders and employees to make good business and investment decisions. They are used externally by prospective investors, financial institutions, suppliers, customers, competitors, and governments...
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...Corporate governance 1. Directors * Composition of bod * Undertaking and letter by director * Right of director * Qualification, vacation of office and removal of directors * Restriction on directorship * Method of computation * Directors’ training 2. Audit committee * Composition of audit committee * Chairman of audit committee * Written term of references * Function of the audit committee * Attendance of other directors and employees * Procedure of audit committee * Reporting of breaches to the exchange * Right of the audit committee * Quorum of an audit committee * Retirement and resignation * Review of the audit committee 3. Auditors * External auditor * Removal or resignation of external auditor * Review of statement * Right to request for meeting 4. Corporate governance disclosure * Disclosure pursuant to the code * Additional statement by bod 5. Internal audit Corporate Review A. Vision and mission B. Strategic intents C. Corporate milestones D. Awards and ranking E. Financial highlight F. Corporate sustainability statement 1. Marketplace 2. Community 3. Environment 4. workplace G. Bod H. Bod’s profile I. Regulation J. Corporate governance statement 1. Establish clear roles and responsibilities a. Function of...
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...innumerable corporate scandals such as Enron, WorldCom and Tyco. These companies were misrepresenting their financial reporting to investors and stakeholders to make themselves look more financially stable when in reality they were not. This misrepresentation resulted in huge financial losses and the mistrust of investors in the market. In order to better control financial reporting and restore investors trust, the SOX act was passed. Sarbanes-Oxley aims to enhance corporate governance and strengthen corporate accountability. It does that by: • formalizing and strengthening internal checks and balances within corporations • instituting various new levels of control and sign-off designed to • ensure that financial reporting exercises full disclosure • Corporate governance is transacted with full transparency. (Sarbanes-Oxley Essential Information) The Sarbanes-Oxley Act implemented new standards for financial reporting accountability in a way that CEOS could not pass on the blame to others. They cannot hide behind the “I was not aware of the company’s financial issues “reason anymore. Executives are now held responsible for any financial misrepresentation in their companies’ reporting. They are also held accountable for the design and implementation of new internal control to validate their financial records. Thus, they are responsible of making sure that an internal control report as well as an internal control assessment report is filed along their financial reporting. ...
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...KPMG International Survey of Corporate Responsibility Reporting 2011 kpmg.com The Definitive Snapshot of CR Reporting Welcome to The KPMG International Survey of Corporate Responsibility Reporting 2011. We believe that this report represents the largest and most comprehensive survey of CR reporting trends ever published. Thirty-four hundred companies representing the national leaders from 34 countries around the world, including the largest 250 global companies based on the Fortune Global 500 ranking, were included in our research. Since we published our first report in 1993, KPMG’s International Survey of Corporate Responsibility Reporting has provided a definitive snapshot of the evolving state of CR reporting and continues to deliver unprecedented insight into national, global and industry reporting trends. This is the first in a series of three complementary reports. Future analysis will focus on the challenges related to water, supply chain and regulatory optimization. © 2011 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. All rights reserved. Contents Executive Summary KPMG Corporate Reporting Quadrants The State of Global Corporate Responsibility Reporting – Corporate Responsibility Reporting Comes of Age in 2011 Measuring the Markets – Corporate Responsibility Reporting at the Country Level Ranking...
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...Committees in enhancing the act of external audit so as to gratify stakeholders’ needs. In present years, Audit Committee (AC) has become to be one of the mainstays in Corporate Governance system in British public companies. It plays a vital act by bestowing critical oversight of risk management in a firm across monitoring the integrity of its financial statements in conjunction to company’s financial performance. According to the Combined Code on Corporate Governance, all listed company are needed to set up an AC. According Millichamp et al (2008), it should comprise of no less than three non-executive managers who are independent directors. The members should expert in certain areas in company, however should have no on-site managing the management of the business. Besides, members should state their duties and powers clearly in written form. External audits normally furnish non-audit services across the year and rely on the inner control. They furnish reasonable assurance concerning the effectiveness of internal controls above financial describing across a collection of evidence. They express their judgments if the financial statements are fairly gave by the association and additionally untitled make sure the accounting records are well upheld in a proper way. They are responsible to the stockholders in a firm in addition to reveal the annual financial reports by collecting the facts so as to attain reasonable assurance. In our society today, external audits will even bring up helpful...
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...Sustainability reporting is a set of reports to measure and disclosing for fulfil the interest of internal and external stakeholders such as employees, customers, local communities and more to provide insight into corporate sustainability performance through the development of sustainability (Sustainability Reporting Guidelines 2011, 3). It linked to describe reporting on environmental, economic and social impacts in business terms often called the triple bottom line approach. Triple bottom line approach using qualitative and quantitative for the measurement of company performance as well as to attain the goal of sustainable development (Brueckner 2010, 94). Sustainability reporting also called non-financial reporting which illustrate key elements corporate performance such as social reporting, triple bottom line reporting and more (Choudhuri and Chakraborty 2009). Within the sustainability reporting, the Global Reporting Initiative (GRI) which include general and sector specific content that has been agreed by variety of stakeholders around the world to generally applicable for reporting corporate sustainability performance (Sustainability Reporting Guidelines 2011, 3). Organization with sustainability will drive the increases of profit. Hence, product and services supply in environmentally friendly and energy-efficient because of the rising of demand by the society. A well corporate sustainability performance may influence the perception of society toward the company (Green...
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...Financial & Accounting Function Teams and Responsibilities 1. Operations Reporting Team .Internal customer BU/departments to serve - Operations & Training, Stores . Key Responsibilities a. Restaurant Accounting/invoice processing- Cash & Sales, Accounts Payable, Real Estate & Construction (Fixed Assets), Food & Paper and inventory, Crew Payroll/MPF and G&A expenses b. Daily/Weekly sales and key KPI decentralized reporting and monitoring c. Monthly Closing and Store P&L, Balance Sheet and Cashflow Reporting and Review d. Monthly Restaurant Consulting-P&L Profitability opportunities and follow up action plans 2. Planning and Analysis Team .Internal customer BU/departments to serve - Real Estate & Construction, Marketing, Human Resources, Supply Chain, IT . Key Responsibilities a. Provide financial vision, insight and strategy, and lead annual business planning and budgeting process b. Monthly rolling forecasting (income projection) c. Quarterly business review and monthly financial commentary & presentation d. Provide key decision support via Pre and Post analysis of :- Capital Expenditure/Lease (new store development and re-imaging, IT), Marketing promotion programs and new menu items HR Benefits (including new bonus scheme) Menu price adjustment Food Suppliers contracts New Business projects (eg Food Delivery, Dessert Kiosks) e. Ongoing development and upgrade of financial...
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...CORPORATE REPORTING AND ANALYSIS By Dr. S.A.S. ARUWA[1], CNA ____________________________________________________________________ Being a paper presented at ANAN Practitioners’ Forum at Mainland Hotel, Lagos on 3rd August, 2010 ____________________________________________________________________ Abstract Good corporate reporting is generally an indication of competitiveness and superior corporate governance. Good reports show initiative and effort on the part of the preparers. Significant changes in the corporate external reporting environment have led to proposals for fundamental changes in corporate reporting practices. A variety of new information types are been demanded, in particular forward-looking, non-financial and soft information. Openness and transparency in annual reporting on an unprecedented scale may be inevitable with the adoption of International Financial Reporting Standards (IFRS) and Nigeria’s commitment to adopt IFRS; Nigerian companies will have no alternative but to bring themselves up to speed. One way is to ensure that company’s reports actually reflect good governance. INTRODUCTION Good corporate reporting is generally an indication of competitiveness and superior corporate governance. Good reports show initiative and effort on the part of the preparers. “The better reports always address all the required relevant information concisely, and disclose thoroughly the measures taken – including on activities, corporate policy, strategic plans...
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...Caltex / 2014 Annual REPORT Corporate Governance Statement The Board is committed to conducting the business and operations of Caltex Australia Limited and its group companies (Caltex) in accordance with high standards of corporate governance, and in the best interests of our shareholders. The Corporate Governance Statement provides information about the Caltex Group’s corporate governance practices for 2014, including compliance with the ASX Corporate Governance Council’s Corporate Governance Principles and Recommendations for the year ended 31 December 2014 and as at the date of this Annual Report. A graphical representation of Caltex’s Corporate Governance Framework (CG Framework) is set out below. Delegation MD & CEO Board Independent Advice • Independent legal or other professional advice Audit Committee • Audit Committee Charter OHS & Environmental Risk Committee • OHS & Environmental Risk Charter Oversight through reporting • External auditors External Auditor Policy • Internal Audit • Board Charter • Board Tenure Policy • Board Composition, Appointment, Induction & Election • Charter of Director Independence • Delegation of Authority • Performance Evaluation Process • Policy for Transactions with Chevron • Risk Management Summary • Continuous Disclosure Policy • Securities Trading Policy • Shareholder Communications Policy • Code of Conduct • Diversity and Inclusion Policy Human Resources Committee • Human Resources...
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